Bloomberg: Saudi economic concerns shift from oil to non-oil sectors

SANAA, Oct. 28 (YPA) – Bloomberg has reported growing economic concerns in Saudi Arabia amid continued and escalating missile attacks by Sanaa forces on Saudi territory.

The agency said the attacks had shifted concerns beyond the oil sector to non-oil industries central to Saudi Arabia’s Vision 2030.

It warned that continued attacks could threaten tourism, transport and foreign investment, creating further challenges for the kingdom’s economic diversification plans.

Saudi stocks have recorded steep losses, placing the market among the world’s weakest-performing emerging markets this October, Bloomberg reported. The benchmark index has moved closer to its lowest level since 2021 following two consecutive months of declines.

A former International Monetary Fund official told Bloomberg that the attacks were weakening one of the main factors that had made Saudi Arabia attractive to foreign investors: its reputation for stability.

The agency also reported that the attacks had disrupted air travel in Riyadh, delayed major events and brought much of the activity in the capital’s financial district to a halt.

According to Bloomberg, economists warn that rising oil revenues alone would not be sufficient to compensate for the wider economic damage to Saudi Arabia’s non-oil sectors.

@E.Y.M